Empirical Research On Credit Risk From Group Affiliated Enterprise Of Commercial Banking

Given their apparent competitive and resource advantages and that fact that they bring high return to the banks, syndicate companies are high profile and sought-after clients of the commercial banks. However, because of the lacking of a strong credit risk management on loans to the syndicates, commercial banks nowadays often face the challenges of over extending credits to the syndicates, leaving enormous risks behind. In some areas, syndicate credit risk has become the key credit risk of local commercial banks. Along with the financial scandals of public traded companies, syndicate credit risk has called for an immediate attention by commercial banks and regulators. It is very complex for reason of credit risk of group clients at present. Group clients reason, commercial banks reason, external credit system and information system building. It is a complete project for the risk control of group credit business. So we should control credit risk from commercial banks internal management, loan contract add protection items, society credit system, information system building and complete laws to avoid risk and ensure the safety of credit assets. At the same time, realize the banks steady operation and long time development.